Property Tax Assessment Time
The New Year is now upon us and some of you have begun to receive your Property Assessment Notice from the State of Maryland Department of Assessments and Taxation (SDAT) and may be trying to figure out what it all means.
Every homeowner pays yearly State, County, and sometimes Municipal taxes based on the assessed value of the property. Property values are assessed every 3 years and for many homeowners, 2010 is a new assessment year. For those homeowners up for a new Assessment in 2010 many will see the ‘New Market Value’ of their property drop, sometimes significantly, from the previous ‘Assessed Value’. While it can be a little discerning to see a drop in value, this value may or may not reflect the actual current real market value of your property. What it does represent is a lower tax base for your property which ultimately means lower taxes for you (assuming tax rates remain the same.)
No action is required on your part concerning the Assessment unless you feel the ‘New Market Value’ does not accurately reflect the current real market value. (i.e. the ‘New Market Value’ listed is significantly higher than the current real value). In this case, you have 45 days to submit an appeal and should do so. Do not appeal if the ‘New Market Value’ is lower than the current real market value. Give us a call if you feel there is a discrepancy in the market value and we will be happy to assist you in this process.
In addition to the Assessment Notice, you should also receive a one-time Application for Homestead Tax Credit Eligibility (if you have not already completed one in the past). If this Application is for your primary residence (investment properties are excluded from the credit) it is very important that you complete the application and have it submitted by the deadline listed. The Homestead Tax Credit limits the amount your property taxes may increase on a yearly basis to a maximum of 10% regardless of the increase in assessed value. Many homeowners are currently benefiting from this Credit which is listed on your Annual Tax Bill that is typically distributed around June. In order to continue to benefit from this Credit, you must complete the application and submit it to the appropriate authority.
Should you have any questions regarding Tax Assessments, the Homestead Tax Credit, or anything Real Estate, give us a call or send us an email and we will be happy to answer any questions you may have.
Here are some helpful Website Links:
SDAT: Reassessment Map
SDAT: Assessment Appeal Process
SDAT: Homestead Tax Credit Application